In a statement, the Goteborg-based group said Friday it made a net profit of 1.1 billion kronor ($170 million) during the period compared with a loss of 248 million kronor last year.

The group says demand improved in North America, western Europe and Japan and that its new heavy-duty trucks continued to be competitive, having "advanced" their position in the market with increased deliveries.

Revenue in the three-month period grew 13 per cent to 65.6 billion kronor from 58.3 billion a year earlier.

CEO Olof Persson said plans to improve profitability had been successful but cautioned that "there is still more work to do" to cut costs.